There are seven essential elements of a business plan. They aren’t necessarily a sales pitch to obtain funding; this kind of plan uses high-level thinking to guide the next 3, 5, or 10 years. It is a working document that grows and evolves with your business.
Executive summary: The overall outline of the business plan generally describes the business concept, important financial points, major milestones, your current business position, and a clear statement of purpose.
Mission statement: This is what you’re trying to achieve. It should be a more defined goal than “higher profits” or “dominate the market.” The mission statement is a specific set of guidelines and milestones to aim for in the coming years.
Organization description: This is essentially an “elevator pitch” that describes what your business does. This is a clear and concise articulation of what you do and the industry you are in.
Competitive strengths: This is a list of all the key assets and skills your business possesses. These are the advantages that make your business unique and give you a leg up on the competition.
Target market and industry analysis: When you identify your target customer, you begin to define your marketing strategy. This also tells you if your market is growing or shrinking and how best to attract the customers you want.
Key performance indicators: Well-run organizations understand their metrics and KPIs. This part of the strategy identifies and defines what metrics your organization will use as a measure of growth and success.
Financial projections: These are financial models that forecast the potential results for each business unit. You’ll know how many new customers you will need to reach these projections and what prices to charge to get there.